A Small Manufacturer That Makes Clothespins and Other Household Products

question 76

Multiple Choice

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000.This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 15%.If the manufacturer currently makes 75 tons of clothespins per year,which sell at $18,000 per ton,what will be the increase in revenue next year from the new equipment?

• A)$20,700
• B)$80,500
• C)$202,500
• D)$857,000

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Definitions:

Lengthy Time Period

An extended duration that encompasses a significant amount of time, often used in the context of planning, projects, or goals.

Diverse Set

A collection with a variety of distinct elements or members, often referring to a group of people with differing characteristics.

Stocks

Financial instruments representing ownership in a company, entitling the holder to a share of the corporation's assets and profits.

Expected Real Rate

The anticipated return on an investment after adjusting for inflation, representing the true growth of purchasing power.